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Texas Laws | Business and Commerce Code
BUSINESS AND COMMERCE CODE
TITLE 4. BUSINESS OPPORTUNITIES AND AGREEMENTS

(4) the specialty agricultural equipment supplier: (8604)

(A) abandons the market or withdraws from the market by no longer selling to the dealer a type of equipment previously sold to the dealer that constituted a material part of the specialty agricultural equipment sold by the supplier; (8605)

(B) consistently sells products to the dealer that are defective or breach the implied warranty of merchantability; (8606)

(C) consistently fails to: (8607)

(i) provide adequate product support for the type and use of the product, including technical assistance, operator and repair manuals, and part lists and diagrams; (8608)

(ii) provide adequate training required by the supplier for maintenance, repair, or use of the supplier's products; or (8609)

(iii) provide marketing and marketing support for the supplier's product if marketing is a requirement of the dealer agreement; (8610)

(D) consistently fails to meet the supplier's warranty obligations to the dealer as required by contract or law, including obligations under this chapter; (8611)

(E) has engaged in conduct that is injurious or detrimental to the dealer's customers, the public welfare, or the dealer's reputation; (8612)

(F) has made material misrepresentations to the dealer or has falsified a record; (8613)

(G) has breached the dealer agreement; or (8614)

(H) has violated this chapter. (8615)

(b) This subchapter may not be construed to limit a specialty agricultural equipment supplier's obligation to repurchase a dealer's inventory as provided by this section if the supplier terminates or otherwise discontinues the dealer agreement. (8616)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011. (8617)

Sec. 57.358. EXCEPTIONS. (8618)(Text)

(a) A supplier is not required to repurchase from a dealer: (8619)

(1) a repair part that, except as provided by Subsection (b), is in a broken or damaged package; (8620)

(2) a repair part that because of its condition cannot be resold as a new part without repackaging or reconditioning; (8621)

(3) any inventory for which the dealer is unable to furnish evidence, satisfactory to the supplier, of clear title, free and clear of all claims, liens, and encumbrances unless the inventory will be free and clear of all claims, liens, and encumbrances immediately on payment by the supplier of amounts due in this subchapter to the lienholders; (8622)

(4) any inventory that the dealer wants to keep, provided the dealer has a contractual right to keep the inventory; (8623)

(5) equipment delivered to the dealer before the beginning of the 36-month period preceding the date of notification of termination; and (8624)

(6) equipment or a repair part that: (8625)

(A) is ordered by the dealer on or after the date of notification of termination; (8626)

(B) is acquired by the dealer from a source other than the supplier, unless the equipment or repair part was ordered from, or invoiced to the dealer by, the supplier; (8627)

(C) is not in new, unsold, undamaged, or complete condition, subject to the provisions of this chapter relating to demonstrators; and (8628)

(D) is not returned to the supplier before the 90th day after the later of: (8629)

(i) the effective date of termination of a dealer agreement; or (8630)

(ii) the date the dealer receives from the supplier all information, including documents or supporting materials, required by the supplier to comply with the supplier's return policy. (8631)

(b) The supplier will be required to repurchase a repair part in a broken or damaged package for a repurchase price that is equal to 85 percent of the current net parts cost for the repair part if the aggregate current net parts cost for the entire package of repair parts is $75 or more. (8632)

(c) Subsection (a)(6)(D) does not apply to a dealer if the supplier did not give the dealer notice of the 90-day deadline at the time the applicable notice of termination was sent to the dealer. (8633)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011. (8634)

SUBCHAPTER I. ACTIONS AND REMEDIES (8635)(Text)
Sec. 57.401. CIVIL ACTION; INJUNCTIVE RELIEF. (8636)(Text)

(a) If a supplier violates any provision of this chapter, a dealer may bring an action against the supplier in a court of competent jurisdiction for damages sustained by the dealer as a consequence of the supplier's violation, including damages for lost profits, together with the actual costs of the action, including the dealer's attorney's fees and paralegal fees and the costs of arbitrators. The dealer may also be granted injunctive relief for unlawful termination. (8637)

(b) A remedy provided by this section is not exclusive and is in addition to any other remedy permitted by law. (8638)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011. (8639)

Sec. 57.402. CHOICE OF REMEDIES. (8640)(Text)

The provisions of this chapter are supplemental to any dealer agreement between the dealer and the supplier that provides the dealer with greater protection. A dealer may elect to pursue its contract remedy or the remedy provided by state law, or both. An election by the dealer to pursue those remedies does not bar the dealer's right to exercise any other remedies that may be granted at law or in equity. (8641)

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